BC Business
Thanks to a hot resource-based economy, many small and medium-sized businesses in B.C. are seeing record growth in revenue and income. With all of these current opportunities for businesses, the focus has changed for many business owners: instead of working on getting more business, they struggle to manage the increasing volume.
For example, I was recently visiting one of our clients, a wood manufacturer in Kelowna. This manufacturer has some 60 employees working each business day for a single shift. As I continued my visit of the premises, the client was telling me that the company is currently turning away more business than it can handle. Clearly, a second shift would be the way to go. However, to do so, some 25 employees would need to be hired. The problem is, and remains, where do you find 25 additional employees in Kelowna?
Most business owners are not used to dealing with the challenge that stems from an increased volume of lucrative business. They are seldom prepared to strategically position themselves with the appropriate support to maximize opportunities and sustain this growth. How should companies brace themselves for further potential challenges provided by this growing economy? How can they recruit and retain staff?
Given today’s competitive job market, one of the most important issues in recruitment is marketing. Potential employees want to know that they will be working for an organization that has a good reputation. The Web, for example, enables people to immediately access the information they need to make decisions about their employers. A job seeker may want to know more about your products or services, or if your company is environmentally friendly, before making a career choice.
Beyond using print literature or the Web as a vehicle to promote your company, you should create a public image in the community. A consultant could help your firm find ways to build its presence in the public eye through focused advertising, job fairs, industry-association activities and community involvement.
Employee performance feedback is a hot topic in HR management today. With longer work weeks and a demanding business environment, employees today also demand more satisfaction in their jobs. They want to know that they can contribute something worthwhile to your company.
Entrepreneurs should know that their success in providing performance feedback isn’t measured by having employees fill out forms. Smaller companies shouldn’t focus simply on the process, but more on learning how to communicate well with employees. Learning how to listen to employees, address issues constructively and diplomatically and motivate them to do their best is a rule of thumb.
Many entrepreneurs who are used to running one-person shops may lack these communication skills and fail to ensure that employees know exactly what is expected of them. An HR expert can coach managers on how to express themselves clearly and secure employee buy-in. Even in informal settings such as employee lunches, entrepreneurs need to polish their communication skills.
In addition to attracting and listening to employees, small busi-nesses will have to pay close attention to management training. This will become increasingly important with the inevitable retirement of baby boomers and the need to replace them in the management ranks. Training supervisors to replace retirees is becoming an urgent issue for many companies.
Many entrepreneurs are unprepared to hand the torch to somebody else and deal with retirement planning. Typically, as an entrepreneur, you may have all the business knowledge stored in your head, but if it’s not shared with other leaders, they can find themselves in a difficult situation down the road. Today businesses should rely on an HR specialist or consultant to do a needs analysis, and identify employees who may have the potential to become future managers or help owners recruit externally.
It’s unlikely that a small company would require investing in a full-scale HR department, but businesses can tackle HR management issues one project at a time. Typically, an external adviser could handle tasks such as operational restructuring or assessing a performance-feedback system. The advantage of working with a consultant is that he or she can pass on invaluable HR skills to your company. Ultimately, you acquire the knowledge to handle the HR management task yourself.
Scot Speiser is VP and area manager for B.C. North and Interior for the Business Development Bank of Canada.
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